Conventional Gilts
These are the simplest form of UK government bond and make up the largest share of UK government debt (30% as of March 2008). A conventional gilt is a bond issued by the UK government which pays the holder a fixed cash payment (or coupon) every six months until maturity, at which point the holder receives his final coupon payment and the return of the principal.
Read more about this topic: Gilt-edged Securities
Famous quotes containing the word conventional:
“If the Nazis have really been guilty of the unspeakable crimes circumstantially imputed to them, then—let us make no mistake—pacifism is faced with a situation with which it cannot cope. The conventional pacifist conception of a reasonable or generous peace is irrelevant to this reality.”
—John Middleton Murry (1889–1957)